Interesting article about Oil

wanghong

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2 r! f3 a$ d7 Y) v* HBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
+ n! W/ w' ?0 P( I3 rcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
/ S$ k% m6 k9 L$ W/ Wcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
+ K7 \8 {& u+ b) B$ Z+ Q
Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
0 Z  U- l( P/ j1 ^  X! h/ JA year ago these things would have spiked the price of crude oil by at
! l0 r* g" _0 k# aleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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, D2 {; O. n5 v& J9 X8 \1. New oil has been found in Canada, Montana, North & South Dakota and
# }: I) F( S* ^& Pin the ocean near Brazil. Each of these oil fields has more oil than
" V$ `  b, N" }+ G& d+ x% XArabia.
6 R* p! O& [6 V8 {

7 K% j% d% }) k2. New natural gas has been found in Pennsylvania and West Virginia.
5 f4 U0 D7 i6 o, z2 S. w3 p, nThis is the largest find in North America.


4 w9 u* s$ a$ s( G* |3. New methods of injecting CO2 and surfactants into oil wells is
0 F- k8 w  p3 h, {/ \% lbeing used to double their output.


' Z! i. S2 z3 L5 `3 A4 h4. Production of bio-fuels is beginning to reach critical mass. Bio
: m+ T- q8 D# L, c$ y% @$ `+ s3 o9 b8 kfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
6 w* g7 A: d2 u. G3 j$ e( u/ d, }are now selling their used oil to bio-diesel producers. Every pork,
* [6 D% V# P$ Fcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
; u' E) f) Y, u& e  e" Lproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
+ ]+ n6 ^0 A, K: X5 Sconstruction around the world at this time. Several hundred more are
$ |3 q  l4 B2 Y7 P8 \' k+ Dexpected to be built in the future. Much of the energy they produce
will replace oil.
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) x6 p5 D( ^/ i8 ^" \+ @2 D1 n# ?+ W- p5 R7. Every company in any form of transportaion business is replacing
, _  j/ C/ g1 E8 P4 C5 \4 T# u9 lolder equipment such as trucks, airplanes, train engines, ships, etc.
8 U) g9 D7 E2 i8 Gwith new more fuel efficient equipment. Airlines and railway companies
/ a4 z! p1 ~/ l* r5 G' oare experiencing 20% to 25% better fuel econony with the new
equipment.


9 i( H5 _8 U) ]# M& k1 [: TAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
6 I1 ?: Q3 Z; r& }0 n8 yoil wells.

! I- U8 Y0 w1 }8 f) w- h1 [
. }' B( v1 `: B# B0 M10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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! h$ a! S' \1 k* C& ^& W2 gEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
& I  a5 K$ w: A7 v6 ~, a$ X$ hchanging. The important thing is that OPEC no longer has the ability
+ j2 O1 S6 f) r* [+ |to control oil prices.


# r+ I* V- Y) ^2 Y0 U# eWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
( y- T2 b4 i: g2 QIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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0 b( k' _+ U8 r2 M% E7 j& {  A1 dThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
+ K3 i2 A/ {1 `" T( N. z2009 ... FYI-Only